sustainability report 2013 - valcambi.com

Sustainability Report 2013

3

Contents

A word from our CEO ................................................................................................................................... 5

About our Reporting ...................................................................................................................................... 6

Valcambi at a glance ..................................................................................................................................... 7

Milestones ..................................................................................................................................................... 8

History ............................................................................................................................................................ 9

How we operate ........................................................................................................................................... 11

Supply chain ................................................................................................................................................ 13

Client On-boarding Procedure ....................................................................................................... 14

Primary Feeds (mined metals) ....................................................................................................... 14

Secondary Feeds ........................................................................................................................... 15

Processing ...................................................................................................................................... 15

Finished Products ........................................................................................................................... 15

Our Governance ......................................................................................................................................... 17

Our Ethical values ....................................................................................................................................... 18

Our professional standards ......................................................................................................................... 18

Our Team G4-9 G4-10........................................................................................................................................ 19

Memberships, Voluntary Commitments, and Certified Standards G4-15 G4-16................................................ 20

Memberships .................................................................................................................................. 20

Voluntary Committments ................................................................................................................ 21

Certified Standards ......................................................................................................................... 21

Our Products G4-4 .......................................................................................................................................... 23

Our Services G4-4 .......................................................................................................................................... 25

Our Stakeholders G4-24.................................................................................................................................. 26

Material Issues G4-18 G4-19 G4-20 G4-21 ................................................................................................................ 28

Materiality Assessment .................................................................................................................. 29

Materiality Table ............................................................................................................................. 30

Our Priorities................................................................................................................................... 30

How we perform .......................................................................................................................................... 31

Our Economic Performance G4-DMA G4-EC1 ........................................................................................ 31

Our Environmental Performance G4-DMA .......................................................................................... 32

Materials G4-DMA G4-EN1.......................................................................................................... 32

Energy G4-DMA ...................................................................................................................... 33

Water G4-DMA G4-EN8 ............................................................................................................... 34

Waste G4-DMA ....................................................................................................................... 34

Greenhouse Gas (GHG) Emissions G4-DMA ......................................................................... 35

Our Social PerformanceG4-DMA......................................................................................................... 36

Labour Practices and Decent Work G4-DMA ......................................................................... 36

Our Product Responsibility G4-DMA....................................................................................... 38

Society G4-DMA ...................................................................................................................... 38

Human Rights G4-DMA ........................................................................................................... 39

In Accordance with GRI G4 Guidelines CORE level

5

A word from our CEO G4-1

We are prepared for the challenges!

To act in the long-term, best interest of our shareholders, our partners, our clients, the environment,

society and all our stakeholders at large is the best approach to achieve long-term, sustainable success

as a company. Valcambi wants to continue being recognized as a world class operator, a good employer

and responsible corporate citizen.

The continuous efforts to strengthen our ability to collect, monitor, and manage key sustainability-related

information is only possible with the trust of people inside and outside the company. The trust we have

earned during the last 53 years by being always fair and responsible in everything we do. Well informed

and focused discussions with all people involved, technical innovation and our ability to manage every

challenge make us confident that we are able to report clearly on what we do and on the effects our

actions will have.

We are working hard to become a simpler business, to find sustainable, innovative and market-driven

solutions that will make live better, safer and healthier for us and people everywhere.

There is only one thing certain about the future “The Future will surprise us”.

Michael Mesaric, CEO & Board Member

6

About our Reporting

This is Valcambi’s first Sustainability Report. G4-29 Its goal is to describe and quantify the significant

economic, environmental and social impacts generated by Valcambi and to serve as a framework in order

to measure and assess our progress with time.

We have chosen to publish the 2013 report G4-28 according to the latest Guidelines issued by the Global

Reporting Initiative (GRI) – G4. The report is ‘’in Accordance’’ with GRI G4 at the ‘’Core’’ option. G4-32

The next report will cover the 2014-2015 period and will be published in 2016. G4-30

GRI produces a comprehensive Sustainability Reporting Framework that is widely used by more and

more organizations to enable greater transparency. It is universally recognized as the most

comprehensive global standard for sustainability reporting and it has been chosen by most industry

leaders. Every organization can use the Principles and Standard Disclosures set out by the GRI

framework to report on their economic, environmental and social performances and impacts.

In line with GRI G4 requirements, we conducted a Materiality Assessment to identify and prioritize the

issues most important to stakeholders – called the Material Issues. The Material Issues are the main

aspects which influences the stakeholders when forming an opinion or making a decision about Valcambi.

The report was submitted to GRI for the ‘Content Index Service’, which was successfully completed. This

service is GRI’s most comprehensive check for reports based on the G4 Sustainability Reporting

Guidelines.

We decided not to have this report externally assured, since most of the facts & figures contained in this

report are based upon information which has already been assured and comply with the most stringent

standards. G4-33 Valcambi commits to transparency, effective stakeholder engagement, and we objectively

evaluate our progress in terms of our economic, environmental and social impact.

For more details on GRI and its activities please refer to GRI’s website www.globalreporting.org.

The 2013 report is published under the supervision of the Chief Operating Officer Simone Knobloch

(phone +41 91 695 53 11). G4-31

7

Valcambi at a glance

(December 31, 2013) G4-3 G4-5 G4-6 G4-7

Incorporated 1961

Legal form Company Limited by Shares

Company Identification Number CHE-102.067.731

Headquarters Balerna, Ticino, Switzerland

Surface occupied 3.3 hectares

Number of employees 210 (see details - Our Team)

Shareholding structure 100% owned by European Gold Refineries Holding SA

(60.6% Newmont Mineral Holdings, 39.4% private investors)

Share capital CHF 12’000’000

Precious metals refined Gold, Silver, Platinum, Palladium

Holdings G4-17a 65% ValcambiGold N.V.

Annual combined refining capacity Approx. 2'000 tons of precious metals

Product throughput Au 3.8 tons bars and coins per day

Ag 1.8 tons bars and grain per day

In 2013 there were no significant changes regarding the organization’s size, structure, ownership or its

supply chain. G4-13

ValcambiGold N.V., an online retailer, is not covered by this report as it represents a very small part (less

than 1%) of our turnover. G4-17b

8

Milestones

1961 - 1970

1961 Valori & Cambi established

Receives “Patente di Fonditore”

1962 First Refinery Building

1967 Refinery completion

50 % of Valcambi is sold to Credit Suisse

1968 LBMA Good Delivery for Gold & Silver

Another 30% of Valcambi is sold to Credit Suisse

1971 - 1980 1974 COMEX, CME Group CS brand for gold

1978 ASFCMP – Swiss Association of Manufacturers and

Traders in Precious Metals

1980 Remaining 20 % of Valcambi is sold to Credit Suisse

1981 - 1990 1982 TOCOM CS brand for Gold

1991 - 2000

1992 TOCOM Valcambi brand for Platinum & Palladium

1995 ISO 17025 Laboratory Accreditation

1996 ISO 9001 Company Certification

1997 Valcambi becomes a subsidiary of Credit Suisse First

Boston 100%

LPPM Good Delivery for Platinum & Palladium

NYMEX, CME Group brand for Platinum & Palladium

2001 - 2010

2003 100% owned by EGR European Gold Refineries Holding sa

New Electrolytic Gold Refinery

IGE Valcambi brand for Gold, Silver, Platinum & Palladium

2004 TOCOM Brand for Gold

MCS for Gold & Silver

2005 DMCC Valcambi brand for Gold & Silver

2006 Expansion of the Electrolytic Gold Refinery and doubling of

the gold refining capacity

Implementation of Miller Refining Process

Capacity increases by 400%

2008 TOCOM Valcambi brand for Platinum

Registration and Production of Valcambi Green Gold

2011 - 2013 2010 ISO 14001 Company Certification

2012 Introduction of CombiBarTM

2013 LBMA Responsible Gold Certificate

9

History

Originally established as Valori & Cambi SA in May 1961 by a group of 5 Swiss businessmen, the initial

activity was the trade of precious metals. The customer base grew rapidly and the company decided to

build a refinery to fulfil the growing demand for gold products and services. On completion, the refinery’s

strategic location attracted interest from the Swiss banking sector and Credit Suisse was one of the first

regular clients. Demand for physical metal continued to grow strongly and the amount of metal being held

at the refinery increased rapidly with Credit Suisse willingly financing the operation. Ultimately the

strategic relationship between Valcambi and Credit Suisse grew to the extent that the bank expressed an

interest in taking a direct participation in the company and in 1967 it purchased a 50% stake in the now-

renamed Valcambi. A year and a half later Credit Suisse acquired an additional 30% of the capital and in

1980 Valcambi became a wholly owned subsidiary of the bank.

In the mid-90s the outstanding level of Valcambi’s operations has been confirmed: in 1995 the laboratory

obtained the ISO 17025 accreditation as the first Refinery in Switzerland and in 1996 the company

attained the ISO 9001 certification.

In 2003 Valcambi’s shareholding structure changed. Credit Suisse sold all its shares to European Gold

Refineries Holding SA, a company owned 50% by Newmont Mineral Holdings and a number of Swiss

investors. This acquisition enabled Valcambi to start a longterm important investment plan. One of the

first, among others investments was the new gold electrolytic refinery, a world-class example of

efficiency and state-of-the-art technology. In 2006 the above mentioned refinery expanded and doubled

its capacity. In the same year a new area has been dedicated to the Miller refining process plant (a

thermo-chemical refining process). This refining plant, unique in Switzerland, is fit with the most

advanced equipment for process and safety control which results in an outstanding environmental

performance and nowadays remains as a benchmark for the refining industry. The ongoing attempt for

excellent ienvironmental protection performances were officially completed by obtaining the ISO 14001

certification in 2010. The expansion of the electrolytic process and the implementation of the Miller

process increased Valcambis capacity by 400% and catapult the firm into a leading position worldwide.

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How we operate

Our state of the art technology and quality control system build the basis for a strong Valcambi!

Valcambi has been a leading player in the precious metals refining industry for more than 50 years.

We are in a central position in the precious metal value chain. The processes carried out at our refinery

are an essential part of the precious metals lifecycle, before the distribution into the investment or

industrial markets.

The precious metals are refined with different techniques, according to the raw material specifications, up

to the requested purities (maximum 999.99 ‰ for Gold). The refined metals are either cast into

investment products, minted into ingots, coins and medals or converted into alloys or semi-finished

products for the watchmaking industry.

Our precious metals refinery, one of the largest dedicated facilities in the world, situated on a 3.3 hectare

site is located in Balerna, in the southern part of Switzerland. Valcambi focuses strictly on its core

business: precious metals refining, manufacturing of minted and cast precious metals products, and a

range of related services.

Using state-of-the-art technology, the entire operation incorporates the most stringent security, monitoring

and quality control systems. Our annual combined refining capacity of gold, silver and platinum group

metal amounts to approximately 2’000 tons.

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Valcambi’s main objective is to deliver a complete range of services based on quality and excellence.

Some of the largest mining companies in the world, premium luxury watch manufacturers, the largest

international banks, governments, central banks and scrap dealers G4-8 are among our satisfied clients

Our clear targets are shared with all our employees in regards to quality, environmental and safety

standards; we want to be leaders in our industry for: G4-14

• The quality of our products and services

• Environmental protection

• Protecting the Health and Safety of our employees

We are proud of what we have achieved, yet we strive to improve our standing year after year.

Europe Europe non EU N / S America Africa Asia Oceania

33%36%

15%

9%

4%3%

Business turnover per continent

13

Supply chain G4-12

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Client On-boarding Procedure

The Due Diligence procedure involves two steps:

Step 1:

The potential client who desires to establish commercial relationships with Valcambi sends to our Legal &

Compliance Department the Pre-Know Your Client (KYC) form which includes a self-declaration on their

activities plus copies of the Company’s Anti-Money-Laundering Policy, of the last two Audited Financial

Reports and their Responsible Gold policy.

This information is carefully reviewed and a feedback is provided as quickly as possible.

Step 2:

If the pre-KYC information complies with Valcambi’s internal policies and meets all legal requirements,

Valcambi sends out a full final set of KYC documentation requesting more detailed information in order to

complete the Client Identification Process and allow the opening of the account. Our clients are required

to disclose in detail the origin of the precious metal that will be shipped to Valcambi (Know Your Product –

KYP).

The full Due Diligence process takes between 5 and 10 business days and must be in full compliance

with the Swiss Federal Laws and the Anti-Money Laundering policy, the LBMA rules, the Dodd-Frank Act

section 1502 and the OECD guidelines.

All Client information and data are kept confidential and are protected under Swiss data protection laws.

Primary Feeds (mined metals)

Valcambi Green Gold™ (concerns gold only)

Valcambi Green Gold™ is our exclusive Trademark. It is sourced only from mines which meet the highest

environmental, safety and human rights standards. The Valcambi Green Gold™ supply chain is

monitored at all time; the gold is processed in dedicated crucibles, refining banks, and using dedicated

tools. It is kept completely separated from other gold until it reaches the client. Currently all Valcambi

Green Gold™ come from a certified mine located in Nevada, USA.

Mined (gold, silver, platinum, palladium)

Mined metals arrive from first-class suppliers, which are monitored and audited by independent entities

and are compliant with the strictest regulations.

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Secondary Feeds (recycled metals)

Metals coming from secondary feeds (recycled gold, silver, platinum and palladium) originate from

sources which are monitored for their compliance in terms of origin.

Processing

Incoming inspection

The incoming materials and the accompanying documents are inspected to detect possible

inconsistencies. The metal undergoes a first control to discover potential counterfeits and the presence of

radioactive materials.

Statement

The metals are grouped in lots and melted. Our accredited laboratory analyses the fineness of each

individual lot.

Refining

The metals are separated from deleterious elements and purified to the required fineness.

Alloying, casting & minting

The refined metal is cast (in grains or cast ingots), minted (bars, coins, medals, etc.) or transformed into

an alloy according to the clients’ specifications.

Finished Products

The finished products can be divided into 5 categories:

Cast investment products

Minted investment products

Alloys

Coins/Medals

Semi-finished products for the watch industry

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Our Governance G4-34

Board of Directors Valcambi’s Board of Directors is responsible for setting and

overseeing the strategy, organization and sustainability of the

company. The Board comprises of six members, including

Valcambi’s CEO; it is chaired by Thomas Mahoney, Vice

President & Treasurer, Newmont Mining Corp.

Management The CEO and five senior executives are responsible for the

execution of the strategy, including the design and

implementation of Valcambi’s sustainability strategy. G4-36

Audit, Risk and Credit Committee

(ARC) G4-46

The ARC committee, currently composed of four members,

reports directly to the Board. Its role is to supervise all

activities related to auditing, risk and credit management.

Personnel Commission The personnel commission consists of five elected staff

members and they represent the interests of both unionized

and non-unionized personnel. Periodical meetings are held

with the CEO and a HR representative to discuss topics

chosen by the commission members.

Code of Conduct G4-56 Our ethical values and professional standards are reflected in

our Code Of Conduct. This is a document which is shared

among all employees and is available for download from our

website. The Code of Conduct lays out the general principles

that our actions must adhere to in order to act responsibly in

all aspects of our business dealings. All employees must

understand and sign the Code of Conduct.

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Our Ethical values

Everyone in Valcambi has the obligation to behave according to our values!

Integrity Reputation for integrity and fairness is fundamental to our

daily interactions and our long-term success

Responsibility We take responsibility for our actions and honour our

commitments to our employees and stakeholders

Confidentiality We adhere to the highest standards of information security.

We are committed to upholding client confidentiality and

protecting client information unless otherwise required to do

so by law

Compliance Every effort is made to maintain an environment fully

compliant with law and with clear control systems in place

Respect We treat everyone with fairness and respect

Our professional standards

Valcambi emphasizes a total transparency in all our relationships. As Refiner and business partner values like trustworthiness and fairness are the heart of all our activities!

Service and Excellence We are focused on being a proactive business partner,

treating our clients fair and with integrity

Sustainability Valcambi in all its business dealings acts in a social and

environmental responsible manner

Compliance with laws All our employees must adhere to the best practices and

industry standards, and to strictly follow the required rules,

regulations and applicable laws

Risk Culture Our business culture is based on discipline and risk mitigation

or elimination

Transparency We are committed to conducting all our communication in a

constructive, transparent and co-operative manner

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Our Team G4-9 G4-10

Valcambi’s performance depends on a skilled, highly motivated and talented workforce!

On Dec 31st 2013 Valcambi employed a total of 210 people (-6 vs. 2012), of which 175 were permanent

employees (+3) and 35 temporary employees (-9). The dependence on the metal price volatility combined

with irregular supply and demand scenarios for precious metals explains the relatively high number of

temporary workers in our company. The number of women at Valcambi is rather small: 11 are employed

in production and 19 in other departments; 33% of the 6 top managers are women.

All employment contract are aligned with the Swissmem collective agreement (Swiss Mechanical and

electrical engineering industry and associated technology-oriented sectors). G4-11

Employees Production Sales, Admin. /

Security

Management

180

152

28

4

30

1119

2

men womenTeam by gender and departments

20

Memberships, Voluntary Commitments, and Certified Standards G4-15 G4-16

Participating in these organizations’ committees and projects enables us to exchange knowledge and experience, and deepens our understanding of many of the challenges facing our industry as a whole!

All our commitments and accreditations are voluntary and derive from our culture of excellence. We focus

to be the best in class in terms of quality of our products and our services. We constantly seek external

validation through certifications and endorse such commitment to excellence by joining the most

prestigious organizations in the industry, such as the London Bullion Market Association (LMBA, gold &

silver) for the Good Delivery certification, and the London Platinum and Palladium Market (LPPM) for the

Good Delivery status, where we also act as Referee.

Memberships

ACI Suisse Association Cambiste Internationale Suisse

AITI Associazione Industrie Ticinesi

ASFCMP Association Suisse des Fabricants & Commerçants de

Métaux Précieux

CME Chicago Mercantile Exchange – Member

COMEX Commodity Exchange – Accredited Refinery

DMCC Dubai Multi Commodities Centre

IGE Istanbul Gold Exchange – Accredited Refinery

ILAC/MRA International Laboratory Accreditation Cooperation –

Mutual Recognition Arrangement

IPMI International Precious Metals Institute

LBMA London Bullion Market Association – Member

LCTA Lugano Commodity Trading Association

LPPM London Platinum and Palladium Market – Referee and

Member

MCX Multicommodity Exchange of India – Accredited Refinery

NYMEX New York Mercantile Exchange – Accredited Refinery

RJC Responsible Jewellery Council

Silver Institute Member

Swiss Testing STS 114

TOCOM Tokyo Commodities Exchange – Member

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Voluntary Committments

OECD Adoption of guidelines ‘Due Diligence Guidance for

Responsible Supply Chains of Minerals from Conflict-

Affected and High Risk Areas – Supplement on Gold’

Swissmem Swiss mechanical and electrical engineering industry and

associated technology-oriented sectors

Certified Standards

ISO 17025 General requirements for the competence of testing and

calibration laboratories (first laboratory in a refinery

accredited by the Swiss Federal Authorities)

ISO 9001 Quality management systems – requirements

ISO 14001 Environmental management systems – requirements with

guidance for use

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Our Products G4-4

Valcambi offers a distinctive wide range of top quality products in gold, silver, platinum and palladium.

Minted Bars (Au, Ag, Pt, Pd)

Cast Bars (Au, Ag, Pt, Pd)

CombiBar TM (Au, Ag, Pt, Pd)

Grain (Au, Ag)

Round Bars

Valcambi Green Gold™

Coins & Medals

Semi-Finished Products

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Our Services G4-4

Valcambi offers a highly professional and comprehensive range of first-class, customized services,

tailored to the requirements of our business partners.

Transportation

Reception

Assaying

Refining

Manufacturing

Financing

Storage

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Our Stakeholders G4-24

Our Stakeholders are individuals and organisations who interact with or may influence in some way Valcambi’s activites!

We identified our major stakeholders and their specific areas of interest, G4-25 mapped the main groups

and identified the topics which influence their opinions and decisions. G4-27 Subsequently we identified the

methods through which we engage with them in the course of our activity. G4-26

While no specific engagement with external stakeholders was carried out for the purpose of this report,

we did analyze in detail the approaches and procedures we use to interact and cooperate with them.

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Shareholders Periodical Reporting on Business Progress

Board Board meetings with participation of CEO (CEO is Board Member)

Monthly reporting on Business Progress

Monthly conference call

Employees Quarterly report /newsletter to all employees

Important communications updated periodically on notice-boards

Union Representatives (five elected members from and by the staff)

meet with CEO and HR, and others on request

Valcambi Code of Conduct communicated to all employees

Coordination meetings

Two Annual company events

Customers Periodical Customer Satisfaction Surveys

Ongoing communication

Interactions through industry association (LBMA, LPPM, RJC,

ASFCMP, etc.)

Client onboarding process (Due Diligence)

KYC (Know Your Client process)

Web Site

Suppliers Client onboarding process (Due Diligence)

KYC (Know Your Client process)

KYP (Know Your Product process)

Suppliers' evaluation process

Valcambi Code of Conduct

Competitors Meetings organized by Industry associations

Meeting with competitors

Institutions & Authorities Monthly communication to Cantonal offices on environmental topics

Information meetings

NGOs Procedures in place to analyze and address the concerns raised

Engaging with interested and interesting parties

Local Communities Sponsoring activities for disabled and children

Trade & Industry Associations Periodical meetings and exchange of information

Collaboration in the development of industry standards

Participation in exhibitions and events

Engagements and participation in Proactive Monitoring Programs

Methods of Engagement with Stakeholders G4-27

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Material Issues G4-18 G4-19 G4-20 G4-21

The evaluation of the materiality issues are summarized in the Materiality Assessment. Several of the

aspects which have an impact on Valcambi’s sustainability performance are outside of our boundaries,

related to phases in the supply chain which are not under our direct control, such as mining activities or

any additional processing our products could undergo once they leave our premises.

In regards to aspects related to activities upstream of Valcambi, we operate under the rule that only metal

which can be traced as free of any liabilities in terms of illegal and/or unethical activities can be accepted.

We will not accept metals which we are not able to identify according to the above criteria.

As this is Valcambi’s first sustainability report G4-22 G4-23, we are aware that priorities can change over time.

Our aim is to continue to fine tune this materiality process to best capture the evolving concerns of our

stakeholders.

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Materiality Assessment

Aspect Relevance Boundary of impacts Materiality

Internal External Impact on Valcambi

Importance for

stakeholder Level of

relevance

Economic performance

Economic Value Generated and Distributed yes � � � � �

Salaries vs. regional average in comparable industries yes � � � � �

Spending on local Suppliers yes � � � � �

Environmental aspects

Materials yes � � � � �

Energy yes � � � �

Water yes � � � � �

Biodiversity yes � � � �

Greenhouse gas emissions yes � � � �

Waste and discharges yes � � � �

Transport of products yes � � � �

Environmental expenses yes � � � �

Suppliers’ evaluation yes � � � � �

Social aspects

Labour practices and decent work

Work conditions yes � � � � �

Health and safety yes � � � � �

Employees involvement yes � � � � �

Training and education yes � � � � �

Equal opportunities yes � � � � �

Equal remuneration yes � � � � �


Management of grievances yes � � � � �

Human rights

Activities involving human right screening yes � � � �

Freedom of association yes � � � �

Child labour yes � � � �

Force labour yes � � � �

Rights of local population yes � � � �


Society

Local communities yes � �

Corruption control yes � � � � �

Anti-competitive behaviour yes � � � � �

Non-compliance with local laws yes � � � � �


Product responsibility

Safety of products yes � � � � �

Information and labelling yes � � � �

Customer surveys yes � � � � �

Sale of banned or disputed products yes � � � � �

� high � medium

30

Materiality Table

Based on the above assessment, we mapped our materiality aspects according to their importance to our

stakeholders and to our business.

Our Priorities

The analysis of the Stakeholders’ needs and the Materiality Assessment allowed us to identify the areas

of greatest importance for Valcambi:

• Trustworthiness, Ethical and Professional behavior

• Our People

• Our Clients and their Satisfaction

• Economic Performance

• Energy, Water and CO2 emissions

These areas are fundamental for our business and are addressed and accurately represented in this

report, limited only by confidentiality reasons and the sensitive nature of some information.

31

How we perform

Our Economic Performance G4-DMA G4-EC1

Valcambi is a privately owned company and under Swiss Law not required to publish its financial figures.

The management decided not to disclose Valcambi’s annual results because this information is neither

critical nor of any substantial significance for the overall quality of this report.

Our contribution to the economic progress of the region in which we operate is represented by the

salaries and benefits paid, the direct and indirect taxes contributed and the purchase of goods & services.

Below are the most relevant economic indicators:

• The total direct taxes paid by Valcambi at the communal, cantonal and federal level in 2013

amounted to 26.8% of Net Profit.

• Total labour expenses amount to 26.2% of our total turnover, whit an increase of 0.4% vs. 2012

• For the purchase of products and services, whenever possible Valcambi favors local suppliers.

Suppliers outside of Switzerland are only chosen when a comparable product or service is not

locally available. In 2013 more than half of our total purchases were commissioned to Ticino-

based suppliers, and an additional 34.2% to Swiss companies. G4-EC9

• We have not received any financial assistance from the government in the last two years. G4-EC4

• The minimum salaries G4-EC5 we have paid in 2013 are above the recommendations contained in

the collective contract agreed by Swissmem (Swiss association of mechanical and electrical

engineering industry and related technology-oriented sectors), which will become mandatory by

2018. These salaries are also superior to the local minimum wages

• There are no differences between the salaries of men and women with the same job and

qualifications

• All six members of our top management are local residents. G4-EC6

• Our pension plan is managed by an external third party based on Valcambi’s specifications in

regards to investment strategy, asset classes and risk profile. The risk profile chosen is in line

with our overall risk approach culture. Risk must be measurable and manageable: considering

that these assets belong to our employees and have the purpose of guaranteeing financial

Ticino Rest of Switzerland Abroad – mostly in

Germany and Italy

50.3%

34.2%

15.5%

Proportion of spending on local suppliers

32

security during retirement, we have the obligation not to aim for the highest yield but to find a

healthy mix between capital preservation and a return on assets. We achieved over the years a

coverage ratio of approx. 130%. The benefits we offer are superior to those required by the Swiss

Law on Occupational Pensions (2nd pillar), since a generous pension plan is part of our incentives

to attract and retain qualified staff. G4-EC3

Our Environmental Performance G4-DMA

Switzerland has one of the world’s most stringent regulations in terms of environmental protection. We

are periodically monitored by the local authorities and on a regular basis we carry out internal controls.

The results are regularly reported to the authorities.

Precious metals refining requires a significant amount of water and energy, and represents a moderate to

low environmental risks. Our risk analysis, in close collaboration with the cantonal and communal

authorities, enables us not only to closely monitor our processes, but also our efficiency in using materials

and chemicals, controlling air emissions, water and energy consumption, water discharge and waste

disposal. Apart from being fully compliant with all laws and regulations, we strive to constantly minimize

our environmental footprint and monitor closely the new technical developments.

In 2013 we invested over 1 million Swiss Francs for environmental protection measures, mostly to

minimize our emissions and for the wastewater treatment. G4-EN31

All new suppliers were screened in regards to environmental criteria’s. G4-EN32

Materials G4-DMA G4-EN1

During 2013 we consumed approximately 3’625 tons of material for our production processes (excluding

precious metals). The top three chemicals used in the refining processes, all acid and alkaline solutions,

amount to ca. 51% of all materials utilized.

70% of the precious metals refined were sourced from secondary feeds and 30% from primary feeds. G4-EN2

Sodium hydroxyde Hydrochloric acid Nitric acid Other Materials

28%

20%

3%

49%

Material consumption in 2013

33

Energy G4-DMA

2013 was a pivotal year for Valcambi. In November we reduced substantially our greenhouse gas

emissions as we substituted heating oil in favor of natural gas and electricity, both energy sources with a

considerably lower GHG footprint; our furnaces are now fully powered by electricity.

The total 2013 energy utilization amounted to 54’233.17 Gigajoules (GJ), with a reduction of 3% vs. 2012. G4-EN3 G4-EN6

The electricity consumed was provided by the local distributor, AGE SA and originated mainly from

renewable sources:

Electricity Natural Gas Oil Total

33,071

16,541

6,361

55,973

34,099

18,440

1,694

54,233

2012 2013Energy consumption 2012-2013 (measurement in Gigajoules)

Renewables Non Renewables Waste Incineration

84.20%

11.70%4.10%

Renewables: 83.20% Hydro, 0.77% Biomass, 0.15% Solar, 0.08% Eolic

34

Water G4-DMA G4-EN8

The water we use is sourced from the public water supply, managed by the Municipality of Balerna

through its subsidiary Azienda Acqua Potabile. The totality comes from a groundwater source located in

the immediate vicinity of our premises.

For production, cleaning, human consumption and hygienic purposes we purchased 305'396 m3 of water,

which represents an increase of 2.3% vs. 2012. 290’000 m3 water was discharged (+2.4%). G4-EN22 The

difference between the input and the output refers mainly to the evaporation taking place during the

production and cooling processes.

The water used for “non-contact” cooling purposes represent 80.4% of the total water discharge and,

doesn’t require pre-treatment. The water is directed into the nearby stream at a controlled temperature,

guaranteeing that the difference of water temperature, measured upstream and downstream from the

pipe where our water enters remains constantly below 3 C°.

The water used for production processes (contact water 19.6% of total), is purified in an internal

wastewater treatment plant before being sent to the public treatment unit. This internal purification

process allows us to release water into the public sewage system whose characteristics are well below

the limits of the Federal and Cantonal Ordinance on the Protection of Water.

Waste G4-DMA

We generate three kinds of waste: G4-EN23

Domestic waste food or non-recyclable waste coming mainly from the canteens and collected by the

local garbage collection company (not tracked)

Special waste potentially toxic waste coming from production processes and are collected by

specialized, approved and legally authorized treatment companies for disposal and

recycling, in 2013 4,7 Tons

Recyclable waste 100% collected by specialized and legally authorized recycling companies in 2013

183 Tons

The recyclable waste collected in 2013 was divided as follows:

2012 2013

Wood & Paper 569 kg 533 kg

Metals (Al, Cu, Ferrous) 202 kg 405 kg

Plastics 347 kg 233 kg

Other recycled materials 141’668 kg 134’547 kg

35

Greenhouse Gas (GHG) Emissions G4-DMA

According to the Greenhouse Gas Protocol (GGP) the only significant source of Greenhouse Gas

currently generated refers to the stationary combustion systems used to heat the premises and the

furnaces.

Valcambi owns only two company cars, both rarely used. Our company does not lease other company

cars nor rent any mobility services. The emissions related to the use of above mentioned vehicles are

insignificant. Airplane business travel is another negligible source of GHG.

The above is defined by GGP as Scope 1 emissions, which come from sources that are owned or

controlled by the organization , while Scope 2 are indirect emissions, which are in our case negligible.

Based on our data our GHG emissions for 2013 were the following:

(in CO2-Equivalent, conversion based on www.myclimate.org) G4-EN15

Heating oil consumption has been steadily reduced during 2013 and stopped completely in November;

this caused a 12.8% reduction in CO2 emissions vs. 2012

Compared with 2012 we achieved a 3% reduction in energy consumption despite higher production

volumes. G4-EN19

We do not emit ozone-depleting substances like CFC, etc. G4-EN20

Heating Oil Natural Gas Total

580

1475.2

2055.2

156.6

1637.51794.1

2012 2013CO2 equivalent emissions in tons

36

Our Social Performance G4-DMA

The social dimension of sustainability concerns the impacts the organization has on the social systems

within which it operates.

Valcambi’s benchmark are the best practices in the Industry; we always do our best in order to provide:

• a healthy, safe and rewarding work environment with superior benefits for each of our employees

• the best services and products to our business partners, fully compliant with the highest industry

standards and government regulations

• compliance with all legal and regulatory requirements regarding the origin of the precious metals

• adherence to Swiss Law and the most stringent international industry standards for our client

onboarding process

We are well aware that in the precious metals sector there can be significant social issues, especially

upstream of our value chain. At Valcambi we operate with a zero-tolerance policy: we will never enter into

a business transaction where there is the slightest lack of transparency, or where a doubt may occur in

regards to the origin of metals, or the compliance of the prospective client. Our Code of Conduct contains

our guidelines in this area.

Labour Practices and Decent Work G4-DMA

During 2013 the number of employees remained stable: 175 permanent and 35 temporary employees,

with a turnover of 6.9%, due to almost exclusively voluntary departures. G4-LA1

Our employees are and have been always loyal to Valcambi and Valcambi will always be loyal to its

employees.

15% of our workforce has been with us for more than 20 years, 33% for more than 10 years and 59% for

more than 5 years. An extraordinary group of 7 employees have been with us for over 40 years!

<30 years 30-50 years >50 years

12

101

36

2

17

7

Men WomenAge groups by gender, permant staff

37

Our People is our most precious resource and we are particularly proud of having been able to contribute

to keep fluctuations extremely low. Valcambi aims and endeavors to become and remain a desirable

place to work has been rewarded by the loyalty of our People.

In 2013 our team leaders, 7% of the entire workforce, completed a performance review in order to

evaluate any additional training they would need and plan their career development. G4-LA11

100% of our work force (excluding staff hired during 2013, but including temporary workers) received both

a salary increase and a performance bonus. G4-LA2

For 2014 we have planned a working climate survey with all our employees and we will introduce a

periodical monitoring of the workplace satisfaction.

In Valcambi we treat women and men equal: this is valid in every aspect, including the remuneration

policy. We have no gender-related differences in compensation for our staff at all levels. The

remuneration of men and women is based exclusively on their skills, experience qualification and

performance. G4-LA13

During 2013 we substantially increased our training activities: the working hours dedicated to training

amounted to 2’096 hrs (an average of 10 hrs per employee), with an increase of 378% vs. 2012. Some of

the trainings offered were mandatory, while other were optional; the subjects touched multiple aspects:

health & safety, IT, languages, lean manufacturing, fire service, quality management, compliance, sworn

assayer, precision measuring instruments and taxation. G4-LA9

Health & Safety issues are supervised by our Health & Safety Manager, in collaboration with the HR

department. Our objective is Zero Incidents. Every event which causes an accident or an anomaly is

registered and corrective measures are taken in order to avoid any reoccurrences. Lost days are

equivalent to scheduled working days and lost-day-count begins on the day after the accident occurs. In

53 years of history we never had any fatalities.

We registered 13 professional injuries for a total of 107 lost days in 2013, an average of 8.2 work-days

loss per event. 7 injuries caused absences of more than 5 days but all 13 colleagues were able to resume

their employment by 31.12 2013. There was no occurrence of occupational diseases. G4-LA6

IR (Injury Rate) 6.7, LDR (Lost Days Rate) 32, ODR (Occupational Disease Rate) 0, AR (Absentee Rate)

3.5%.

IR, LDR, ODR are factors determines by the International Labor Organization guidelines.

<1 year 1-5 years 5-10 years 10-20 years >20 years

12

59

46

3127

175 EmployeesLength of employment, permanet staff

38

Our Product Responsibility G4-DMA

All our products leave our factory with a clear labeling, either engraved or when this is not possible like in

the case of gold and silver grain or certain semi-finished products, accompanied by a certificate. The

labeling includes weight, metal description, fineness, assayer mark, and, where appropriate, a serial

number. G4-PR3

In 2013 we measured our customer satisfaction level through questionnaires sent to 99 clients, with a

66% return rate. All clients, except one, were fully satisfied by the products and services provided. We

immediately contacted the dissatisfied client to better understand the reason behind the negative

evaluation. Once we clarified the issues and concerns raised, the necessary corrective measures were

implemented in order to restore his satisfaction and trust. G4-PR5

Society G4-DMA

Valcambi’s ethical standards –as described in the Code of Conduct and in the Precious Metals Supply

Chain Policy (see our website www.valcambi.com) promotes an approach to avoid any form of

contribution, or support to, corruption or bribery. Strict policies, procedures and controls are applied both

internally (employees and external contractors) and externally (in the precious metal supply chain). G4-SO3

All Valcambi employees have to understand and sign our Code of Conduct, where it is stated that any

form of corruption or bribery is not tolerated. Any information regarding such incidents as well as

misconduct, dishonest or illegal activities occurring at Valcambi have to be reported. G4-SO4 Our employees

can also submit their observation in form of an anonymous communication. Our whistleblowing procedure

is known by all our employees, and trainings on these subjects are held periodically, especially for the

departments where these violations could potentially arise. G4-SO10

Bribery and corruptions are considered a potential high risk in the precious metal supply chain. Valcambi

has implemented the Precious Metal Supply Chain Policy, whose application is audited on an annual

basis by independent Auditors according to LBMA guidelines. The Policy as well as the Audit results are

publicly available on our company’s website.

39

Human Rights G4-DMA

We operate in accordance to the OECD Due Diligence Guidance for Responsible Supply Chains of

Minerals from Conflict-Affected and High-Risk Areas and ILO Labour Standards. G4-HR5 G4-HR6

Human rights violations are monitored, but they can still affect the precious metal supply chain. We are

focused to keep our precious metal supply chain free of any human rights violations. All contracts and

agreements signed by Valcambi with its clients contain clauses which explicitly forbid human rights

violations and abusive child labour. All our potential business partners are requested to perform a Due

Diligence process which includes, among other critical aspects, the strict control of human rights

compliance. G4-HR10 G4-HR11.

All communications concerning potential human rights violations are carefully examined. In 2013 we

investigated one case regarding a mining project in South America belonging to one of our clients. The

client could acceptably prove that the allegations were unsubstantiated. G4-27 G4-HR12

GRI Content Index

General Standard

Disclosures

Page

Number

Ext.

Assurance

Strategy and Analysis

G4-1 5 - CEO Statement

Organizational Profile

G4-3 7 - Name of Organization

G4-4 23, 25 - Primary brands, products, and services

G4-5 7 - Location of the organization’s headquarters

G4-6 7 - Name & number of countries where the organization operates

G4-7 7 - Nature of ownership and legal form

G4-8 12 - Markets served

G4-9 19 - Scale of the organization

G4-10 19 - Characteristics of the Workforce

G4-11 19 - Employees covered by collective bargaining agreements

G4-12 13 - Organization’s supply chain

G4-13 7 - Significant changes during the reporting period

G4-14 12 - Precautionary approach towards risk management

G4-15 20 - Externally developed economic, environmental and social charters, principles, or other

initiatives. G4-16 20 - Memberships of associations and organizations

Identified Material Aspects and Boundaries

G4-17 7 - Entities included in the organization’s consolidated financial statements.

G4-18 28 - Definition of Report context and aspect boundary

G4-19 28 - Material Aspects identified in the process for defining report content

G4-20 28 - Material Aspects within the boundaries of the organization

G4-21 28 - Material Aspects outside the boundaries of the organization

G4-22 28 - Restatements of information provided in previous reports, if any

G4-23 28 - Significant changes from previous reporting periods in the Scope and Aspect Boundaries

Stakeholder Engagement

G4-24 26 - List of stakeholder groups engaged by the organization

G4-25 26 - Basis for identification and selection of stakeholders with whom to engage

G4-26 26 - Approach to stakeholder engagement

G4-27 26, 27 39 - Key topics and concerns that have been raised through stakeholder engagement.

Report Profile

G4-28 6 - Reporting period for information provided

G4-29 6 - Date of most recent previous report (if any)

G4-30 6 - Reporting cycle (such as annual, biennial)

G4-31 6 - Contact point for questions regarding the report or its contents

G4-32 6 - In accordance’ option and GRI Content Index

G4-33 6 - Organization’s policy and current practice with regard to seeking external assurance

Governance

G4-34 17 - Governance structure

G4-36 17 - Executive-level positions with responsibility for economic, environmental and social topics

G4-46 17 - Highest governance body’s role in reviewing the effectiveness of the organization’s risk

management processes for economic, environmental and social topics

Ethics and Integrity -

G4-56 17 - Organization’s values, principles, standards and norms of behavior

Specific Standard Disclosures

Material Aspects

DMA and Indicatora

Page

Number

Ext.

Assurance

Omissions

Aspect: economic performance

G4-DMA 31 - - Generic disclosures on management approach

G4-EC1 31 - - Direct economic value generated and distributed

G4-EC3 32 - - Coverage of the organization’s defined benefit plan obligations

G4-EC4 31 - - Financial assistance received from government

Aspect: market presence

G4-DMA 31 - -

G4-EC5 31 - - Ratios of standard entry level wage by gender compared to local minimum wage

G4-EC6 31 - - Proportion of senior management hired from the local community

Aspect: procurement practices


G4-EC9 31 - - Proportion of spending on local suppliers

Aspect: materials


G4-EN1 32 - - Materials used by weight or volume

G4-EN2 32 - - Percentage of materials used that are recycled input materials

Aspect: energy


G4-EN3 33 - - Energy consumption within the organization

G4-EN6 33 - - Reduction of energy consumption

Aspect: water


G4-EN8 34 - - Total water withdrawal by source

Aspect: emissions


G4-EN15 35 - - Direct greenhouse gas (ghg) emissions (scope 1)

G4-EN19 35 - - Reduction of greenhouse gas (ghg) emissions

G4-EN20 35 - - Emissions of ozone-depleting substances (ods)

Aspect: effluents & waste


G4-EN22 34 - - Total water discharge by quality and destination

G4-EN23 34 - - Total weight of waste by type and disposal method

Aspect: overall


G4-EN31 32 - - Total environmental protection expenditures and investments by type

Aspect: supplier environmental assessment Aspect: supplier environmental assessment


G4-EN32 32 - - New suppliers that were screened using environmental criteria

Sub-category: labor practices & decent work

Aspect: employment


G4-LA1 36 - - Total number and rates of new employee hires and employee turnover

G4-LA2 37 - - Benefits provided to full-time employees that are not provided to temporary or

part-time employees

Material Aspects

DMA and Indicatora

Page

Number

Ext.

Assurance

Omissions

Aspect: occupational health and safety

G4-DMA 36 Generic disclosures on management approach

G4-LA6 37 - - Rates of injury, occupational diseases, lost days, and absenteeism

Aspect: training and education


G4-LA9 37 - - Average hours of training per year per employee

G4-LA11 37 - - % Of employees receiving regular performance and career development reviews

Aspect: equal remuneration for women and men


G4-LA13 37 - - Basic salary and remuneration by gender

Sub-category: human rights

Aspect: child labour


G4-HR5 39 - - Operations and suppliers identified as having significant risk for incidents of child

labour, and measures taken

Aspect: forced or compulsory labour


G4-HR6 39 - - Operations and suppliers identified as having significant risk for incidents of

forced or compulsory labour, and measures takes

Aspect: supplier human rights assessment


G4-HR10 39 - - % Of new suppliers that were screened using human rights criteria

G4-HR11 39 - - Significant actual and potential negative human rights impacts in the supply chain

and actions taken

Aspect: human rights grievance mechanisms


G4-HR12 39 - - Number of grievances about human rights impacts filed, addressed, and resolved

through formal grievance mechanisms

Sub-category: society

Aspect: anti-corruption


G4-SO3 38 - - Operations assessed for risks related to corruption and the significant risks

identified

G4-SO4 38 - - Communication and training on anti-corruption policies and procedures

Aspect: supplier assessment for impacts on society


G4-SO10 38 - - Significant actual and potential negative impacts on society in the supply chain

and actions taken

Sub-category:product responsibility

Aspect: product and service labelling


G4-PR3 38 - - Procedures for product and service information and labelling

G4-PR5 38 - - Results of surveys measuring customer satisfaction

valcambi.sa ● Via.Passeggiata ● CH-6828.Balerna ● Switzerland ● P +41 (0)91 695 5311 ● www.valcambi.com ● [email protected]

sustainability report 2013 - valcambi.com

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